The former Lens forward joined Liverpool in a bank-breaking £10m move after dazzling on the global stage during Senegal's fairytale run to the World Cup quarter-finals in Japan and South Korea in 2002.
The two-time African Player of the Year has, however, been blighted by off-field controversies - such as his much-publicised spat with a Celtic supporter - and six goals in two seasons has proved a mediocre return for a much-hyped talent.
A Spokesman for the La Liga outfit said: "Diouf was here and he left Malaga almost convinced to sign for us. We would hope for a decision on Tuesday or Wednesday of next week."